“Our direction of travel from a strategic standpoint is to pivot the company further into DTC,” said CEO Patrice Louvet. “Our DTC today is about 63%, 64% of [revenue] for the total company. And as we guided during Investor Day [in September 2022], we expect the numbers to be north of that in the coming years.”
Sales for Ralph Lauren’s digital ecosystem. which includes directly operated sites, pure-play, department store dot-coms, and social commerce, increased high-single digits during the year. Owned digital sites alone saw sales grow mid-single digits, and the company has put user experience enhancements through digital content and more customer personalization on its roadmap for the upcoming fiscal year.
Though Q4 revenue grew 2% in North America, retail comp-store sales dipped 4%. Physical retail remains a core component of its bid to drive connected commerce, and Ralph Lauren welcomed 21 new stores and concession-based shop-in-shops around the world in Q4. This included a particular emphasis in China, which the company expects to remain one of its fastest-growing markets.
The company, which has closed two-thirds of its wholesale doors in North America over the last three to four years, plans to open 250 stores over the next three years.